SAY CHEESE

ANALYZING THE MACROENVI RONME

NT

d n a , d e v i l t r o h s , e l b a t c i d e r p FAD - un l a c i t i l o p d n a , c i m o n o c e , l without socia . e c n a c i f i n g i s

nce sequed tion orure ane - direc nities. the futas som u t r o . y TREND pe of that hp t p i a l s i o t h b s n y a e n r v a u d m of ee d s n provid ntum a m om e

, l a c i t i l o p , c i m o ] n M t o a c h t e [ , l s a e i g c n o s a h large nological c n i e c h n c o e t d n d a n e , a m m o r s o f r o o f t s w u o l e c n e are s u l f n n i e t y e d h n t place, ween seven a t e b . time r e g n o l r o , s r yea

D N E R T A G E

From villages to superc i

ties

o t e c n a n i m o d e l a From m r e w o p c i m o n o c female e

Trends and megatrends merit close attention.

MACROENVI RONMENT forces and tr ends that shape oppor tunities and pose threats . UNCONTROL LABLE

Socio-cultural D e m o g r a p h i c c i m o n Eco
l a c i g o l o Natural Techn Politica l-legal

DEMOGRAPH IC Population people make up markets

h t w o r G n o i t a l u p Po

P p u l a t i n E xip Suf ficio l o s i o ent Puro ne chas ng Pow r

s r e o r m e o r p d m n E y S e l t t e k Lit c o P Six

AS I AN

S LATION POPU

TATS

x i M e g A n o i t a l u p o P

According to United Nations, many East Asian countries have experienced a decline in their Total Fertility Rates in the past 50 years. In the period of 1965-1970, the average family had five or more children. From 2005 to 2010, the average shifted to below 2.1 children per family.

What is the implication?

g in in f e d s p u o r g Cohor t 5 moments

School-Age Children Have signicant inuence over family purchases Tweens and Teens, Gen Y, Millenials Spend billions annually on everything from snacks to clothing to electronics. Also inuence billions of family purchases. Companies that target this group can have signicant success

Generation X

Born between 1966 and 1981

Family-oriented, well educated, and optimistic Baby Boomers Born between 1946 and 1965, Inuenced by Vietnam War and careerism that followed. Lucrative and Diverse segment that generally tends to value health and quality of life.

Seniors Heads of households more than 55 years old control about threequarters of the countrys total assets. Account for 40 percent of new-car sales and most of the travel spending

d n a ic n h t e in y m r o a r v f s t n ie r e t r n e f u if o d C e Over generalizkeup - needs a m racial e ach other

Question: How would religion in different countries in Asia impact on the marketing strategies of a firm wishing to enter that country? Give examples using the marketing mix variables.

RELIGION S

I N AS I A

Illiterates. College degrees. . s t u o p o r d l o o h c s h ig H . s e e r g e d l o o h s c p s u h o ig r H G l a n o i t n a o i c t u a d c E u d e e u l a v s . n s As ofessional Degree ra Pi

g in s o o h c , g n ti ra a p e s r o g s d More are divorcinsya e e n g f o in y t e rr s a e m v r ti o c r, n te ti la is d g in arr ha ,m yp rru ro ga chm t to oa nE d . ie n rr re a d il M h . s c s n v e r v D e a t h W t S a to S P n o d ti s l n it o te b eh e sa g th uh yin oin ou H btu hd itn wa

n o i t a l u p o P n i s t f i h S Geographical

t n e m n o r i v n E c i m o Econ

n e e w t e b s p a g g Increasin rich and poor

: y b d e t c e f f a e r a s e r u it d n e p x e r e m u s n o C y it il b a il a v A it d e r C d n Savings, Debt a

t n e m n o r i v n E l a r u t l Social-Cu

Society sha pes beliefs

and norms

that define

taste

, n o i t a c i f i t a r g f l e s f l e S f m o s i l w a u Vie d i v i ind

, s s e l e m o H , e m i r C s r e h t O f o View s p i h s n o i t Rela

& e t a v i r P s n o i t a z i n a g r O f o s View Public

y t e i c o S f View o

e r u t a N f o View

e s r e v i n U Views of

The people l iving in a pa r ticular socie many core b ty hold eliefs and v alues that t per sis t. end to Core beliefs and values are passed fr om paren on ts to c hild ren and a reinforced by re major social institutions. Secondar y b eliefs and v alues are m open to chan or e ge. Mar keter s have some chance of changing se condar y val ues but lit chance of ch tle anging core values.

CORE VALUE S

s e u l a V e r Asian Co
Respect for elders-filial piety Confucian ethics Importance of the family Extended

Filipino Core Values

Professor Felipe M. de Leon, Jr.
Commissioner, NCCA Chairman, NLTA University of the Philippines

KAPWA (share identity)

Asian Social Institute

the core of Filipino psychology, it is humaneness at the highest level implies unique moral obligation to treat one another as equal fellow human beings

Filipino Core Values

PAKIRAMDAM (SHARED INNER PERCEPTION) Knowing Through Feeling or implied Knowing; Participatory Sensitivity) A unique social skill inherent in Filipino personhood The need for openness and basic trust is a precondition for this active process of sensing subtle cues

Filipino Core Values

Kagandahang Loob (SHARED HUMANITY)
Pagkamakatao; A Shared Inner Nobility; A Quiet Sense of Responsibility for Others; A Great Compassion for All Living Beings) Nudges a person towards genuine acts of generosity, kindness and caring

Levels of Filipino Social Interaction

AMONG OUTSIDERS: MakiTUNGO (courtesy) MakiSALAMUHA (mixing) MakiLAHOK (joining) MakiBAGAY (adapting) MakiSAMA (getting along with)

Pakikisama
DEEPEST LEVEL OF INVOLVEMENT WITH ANOTHER PERSON STILL CONSIDERED AN OUTSIDER (IBANG TAO)

Characteristic tendencies of this trait are giving in to another persons wish, demands, wants or desires The motive for this could be politeness or expectation of future concessions or immediate rewards

g n i g r e m e s e u l a v d e r a h s . s h t e i c w n s a t p s u o m r u g rc i E c r R o U T s L e U c n C e B i r U e S p x e e f i l l a i c e from their sp

NATURAL EN VIRONMENT The deteriora tion of the environment is a major global conce rn.

n i a t r e c t i h e v a h s n o i t a l u g e r w Ne d r a h y r e v industries

Ever y new technology is a force for creative destruction.

n u r g n o l r o j a m s e t a e r c . o e l s l b a a s e e e i s g e o r l New techno es that are not always fo c n e u q e s n co

The markete r should mon itor the following tre nds in techn ology: Accelerating pace of chan ge Unlimited op por tunities f or innovation Var ying R&D budgets Increased re gulation of technologica l change

l a g e L l a c i Polit

INCREASE IN BUSINESS L EGISLATION Competitive Behavior Product Stan dards Counter feitin g ETC . . . But can also be positive

Other issues : Growth of sp ecial interes t groups Market Refo rm Corruption

Why should marketers pay attention to Macro-Environmental Forces?

Opportunities Macro Environment Forces The Marketing Mix 4 Ps Threats

WHAT ARE ENVIRONMENTAL FORCES THAT AFFECTED THE ASIAN AIRLINE INDUSTRY AND HOW DID THIS FORCES AFFECT HOW BUSINESS/MARKETING IS DONE?

(from Mark

eting: An In troduction (An Asian Perspectiv e)

by Armstro

ng, Kotler and da Silv a:

Table 3.1)

THE MARKETING RESEARCH PROCESS

Define the problem Develop research plan Collect information Analyze information Present findings
Copyright 2009 Pearson Education South Asia Pte Ltd

Make decision

Step 1: Define the Problem, the Decision Alternatives, and the Research Objectives
Marketing management must be careful not to define the problem too broadly or too narrowly for the marketing researcher. Some research is exploratoryits goal is to shed light on the real nature of the problem and to suggest possible solutions or new ideas. Some research is descriptiveit seeks to ascertain certain magnitudes. Some research is causalits purpose is to test a causeand-effect relationship.

Step 2: Develop the Research Plan

uThe second stage of the marketing research calls for developing the most efficient plan for gathering the needed information.
Data Sources Research Instruments Contact Methods Research Approach Sampling Plan

Step 2: Develop the Research Plan uSecondary data

uData that was collected for another purpose and already exists

uPrimary data
uData that are freshly gathered for a specific purpose or for a specific research project
Data Sources

Step 2: Develop the Research Plan

Observation and Ethnographic Research uFresh data can be gathered by observing the relevant actors and settings. uEthnographic research is a particular observational research approach that uses concepts and tools from social sciences to provide a deeper understanding of how people live and work.
Research Approaches

Step 2: Develop the Research Plan

FOCUS GROUP
uA focus group is a gathering of six to ten people who are carefully selected based on certain demographic, psychographic, or other considerations and brought together to discuss various topics of interest at length. uA professional research moderator provides questions and probes based on a discussion guide or agenda to ensure that the right material gets covered. uModerators attempt to track down potentially useful insights as they try to discern the real motivations of consumers and why they are saying and doing certain things. Research uThe sessions are typically recorded

Approaches

Step 2: Develop the Research Plan

SURVEY RESEARCH uCompanies undertake surveys to learn about peoples knowledge, beliefs, preferences, and satisfaction, and to measure these magnitudes in the general population.

Research Approaches

Step 2: Develop the Research Plan

BEHAVIORAL DATA
uCustomers leave traces of their purchasing behavior in store scanning data, catalog purchases, and customer databases. Much can be learned by analyzing these data. uCustomers actual purchases reflect preferences and often are more reliable than statements offered to marketing researchers.
Research Approaches

Step 2: Develop the Research Plan

EXPERIMENTAL RESEARCH
uThe most scientifically valid research is experimental research. uThe purpose of experimental research is to capture cause-and-effect relationships by eliminating competing explanations of the observed findings. uExperiments call for:
uSelecting matched groups of subjects. uSubjecting them to different treatments. uControlling extraneous variables.

uChecking whether observed response differences are statistically significant

Research Approaches

Step 2: Develop the Research Plan

uMarketing researchers have a choice of three main research instruments in collecting primary data:
uquestionnaires, uqualitative measures, and umechanical devices.

Research Instrument

Step 2: Develop the Research Plan

uQUESTIONNAIRES
uA questionnaire consists of a set of questions presented to respondents. uBecause of its flexibility, the questionnaire is by far the most common instrument used to collect primary data. uQuestionnaires need to be carefully developed, tested, and debugged before being administered.
uThe researcher carefully chooses the questions, wording, and sequence. uThe form of the question can influence the response. uMarketing researchers used both closed-end and open-end questions.

Research Instrument

Step 2: Develop the Research Plan uQUALITATIVE RESEARCH

uSome marketers prefer more qualitative methods for gauging consumer opinions because consumer actions do not always match their answers to survey questions. uQualitative research techniques are relatively unstructured measurement approaches that permit a range of possible responses.

Research Instrument

Step 2: Develop the Research Plan

uQUALITATIVE RESEARCH
uQualitative research techniques are a creative means of ascertaining consumer perceptions that may otherwise be difficult to uncover. uBecause of the freedom afforded both researchers in their probes and consumers in their responses, qualitative research can often be a useful first step in exploring consumers brand and product perceptions. Research Instrument

Step 2: Develop the Research Plan

uQUALITATIVE RESEARCH uThere are also drawbacks to qualitative research:
uThe in-depth insights have to be tempered by the fact that the sample size is limited. uQuestion of interpretation

Research Instrument

Step 2: Develop the Research Plan

uQUALITATIVE RESEARCH - MEASURES
u Shadowing Observing people using products, shopping, going to hospitals, taking the train, using their mobile phones. u Behavior mapping Photographing people within a space, such as a hospital waiting room, over two or three days. u Consumer journey Keeping track of all the interactions a consumer has with a product, service, or space. u Camera journals Asking consumers to keep visual diaries of their activities and impressions relating to a product.

Research Instrument

Step 2: Develop the Research Plan

uQUALITATIVE RESEARCH - MEASURES
u Extreme user interviews Talking to people who really knowor know nothingabout a product or service and evaluating their experience using it. u Storytelling Prompting people to tell personal stories about their consumer experiences. u Unfocused groups Interviewing a diverse group of people. To explore ideas about sandals, IDEO gathered an artist, a bodybuilder, a podiatrist, and a shoe fetishist. Research Instrument

Step 2: Develop the Research Plan

uSampling unit: Who is to be surveyed? Define the target population that will be sampled. uSample size: How many people should be surveyed? Large samples give more reliable results than small samples. uSampling procedure: How should the respondents be chosen? Probability sampling allows the calculation of confidence limits for sampling error.
Sampling Plan

Sampling Plan

Step 2: Develop the Research Plan

MAIL QUESTIONNAIRE
uThe mail questionnaire is the best way to reach people who would not give personal interviews or whose responses might be biased or distorted by the interviewers. uMail questionnaires require simple and clearly worded questions. uThe response rate is usually low and/or slow.

Contact Method

Step 2: Develop the Research Plan uPERSONAL INTERVIEW

uPersonal interviewing is the most versatile method. uThe interviewer can ask more questions and record additional observations about the respondent. uIt is the most expensive method. uSubject to interviewer bias or distortion. uPersonal interviewing takes two forms: uArranged interviews. uIntercept interviews. Contact Method

Step 2: Develop the Research Plan uONLINE INTERVIEW

uAdvantages
uInexpensive uFaster uPeople - more honest online than - personal or telephone interviews uMore versatile

uDisadvantages
uSamples - small & skewed uProne to technological problems & inconsistencies

Contact Method

Step 3: Collect the Information uData collection expensive, prone to error uGet right respondents - critical uData collection improve - technology uProtect personal data of respondents

Step 3: Collect the Information uCOMMON SURVEY PROBLEMS

1. Respondents not home 2. Respondents refuse to cooperate 3. Respondents biased/dishonest answers 4. Interviewers biased or dishonest

Step 4: Analyze the Information

uExtract findings from collected data uTabulate & develop frequency distribution uAverages & dispersion computed variables uAdvanced statistical techniques & decision models

Step 4: Present Findings

uThe researcher present findings relevant to major marketing decisions facing management

Step 4: Make Decisions

Marketing decision support system (MDSS) uCollection of data, systems, tools & techniques With software & hardware by which organization gathers & interprets relevant informationfrom business & environment & used for marketing action